Montage, which launched in 2002 with a resort in Laguna Beach, California, currently operates eight hotels and generated $400 million in revenue last year.
Chief Executive Officer Jon Bortz said he remained bullish on the West coast and that the additional asset sales would probably increase Pebblebrook’s concentration in the market, meaning the sales would come from other regions.
Blackstone will walk away with a $112 million breakup fee if LaSalle reaches an agreement with Pebblebrook.
The latest version of Pebblebrook’s bid, from last week, may lead to a superior proposal to the agreement reached with Blackstone, a determination made unanimously by LaSalle’s board.
Average daily rates are growing, but the increase is only barely keeping up with inflation.